Is Diplomat Pharmacy Inc (DPLO) Going to Burn These Hedge Funds?

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Consequently, some big names were breaking ground themselves. Citadel Investment Group initiated the most valuable position in Diplomat Pharmacy Inc (NYSE:DPLO). Millennium Management also initiated a $0.8 million position during the quarter. The other funds with new positions in the stock are Clinton Group, Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Let’s now review hedge fund activity in other stocks similar to Diplomat Pharmacy Inc (NYSE:DPLO). These stocks are Synchronoss Technologies, Inc. (NASDAQ:SNCR), The Dolan Company (NYSE:DM), Haemonetics Corporation (NYSE:HAE), and Commercial Metals Company (NYSE:CMC). This group of stocks’ market caps match DPLO’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SNCR 18 41763 2
DM 4 4142 4
HAE 16 112860 -1
CMC 16 146335 -2

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $76 million. That figure was $21 million in DPLO’s case. Synchronoss Technologies, Inc. (NASDAQ:SNCR) is the most popular stock in this table. On the other hand The Dolan Company (NYSE:DM) is the least popular one with only 4 bullish hedge fund positions. Diplomat Pharmacy Inc (NYSE:DPLO) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard SNCR might be a better candidate to consider taking a long position in.

Disclosure: None


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